July 26, 2013

McKenna's Lengthy Lateral Pursuit

In the spring of 2012, Nancy
Grunberg got a call from a recruiter asking if she would consider talking to
attorneys from the Washington office of McKenna Long & Aldridge. Grunberg, then
the co-head of Venable's Securities and Exchange Commission and white-collar
defense practice, had been with the firm for more than 10 years.

"I didn't know that much
about the firm," Grunberg said. "I was open-minded about McKenna.
We didn't feel pressure to get out, so we took our time."

And took their time they did. Tami
Azorsky, chairwoman of McKenna's litigation department, spent almost 18
months recruiting Grunberg and two of her Venable colleagues, partners Treazure
Johnson and George Kostolampros, before they joined McKenna in June.

"We mercilessly pursued
them," Azorsky said.

After an introduction by legal
recruiting firm Mestel & Co., Azorsky took the lead on wooing
Grunberg, Johnson and Kostolampros. She invited the trio to McKenna's K Street
office for a meet-and-greet with Michael Scheininger, head of McKenna's white-collar
practice, and firm managing partner T. Mark Flanagan Jr.

"I immediately liked
them," Azorsky said. "I like the way they talk to each other and
cooperated in conversation. They have their individual strengths but
collaborate well together."

In the months following their
introduction, Grunberg, Johnson and Kostolampros met with firm attorneys
several times, even flying down to Atlanta to meet partners in the corporate
practice.

"McKenna recruited us
vigorously," Grunberg said. "They made a compelling case that they
have practice areas that will help us grow our SEC enforcement practices."

While it is not uncommon to use a
recruiting firm, Azorsky said that she prefers recommendations from McKenna
attorneys. More often than not, it's these referrals that lead to lateral hires.
Either way, it's no easy task to pursue laterals.

"Regardless of whether the
introduction is done by a recruiter, the recruitment process has to be done by
the lawyers at the firm," Azorsky said.

"We have a vibrant practice
in the areas of financial fraud and financial regulation compliance,"
Azorsky said. "Increasingly we saw SEC issues being raised in those
investigations. We really wanted a well-credentialed group of lawyers."

Grunberg did two stints with the
U.S. Securities and Exchange Commission, totaling nine years. Her most recent
tenure lasted from 1996 to 2002, during which she was assistant director in the
Division of Enforcement.

Likewise, Johnson and Kostolampros
both served in the Enforcement Division. Johnson was a senior assistant chief
litigation counsel, while Kostolampros was senior counsel. Johnson's main
responsibilities included handling enforcement matters related to financial
fraud, insider trading, Internet fraud and market manipulation. Her current
work encompasses criminal investigations, prosecutions and corporate
governance. Kostolampros' work deals with insider trading, anti-corruption and
Foreign Corrupt Practices Act matters.

When the trio left Venable, W.
Warren Hamel became the sole chairman of the SEC and white-collar practice.
In an interview, he said that while it was sad to see his colleagues leave, the
practice remained strong.

"From a personal perspective,
we are going to miss Nancy, Treazure and George," Hamel said. "It's
not going to have a ripple effect on the remainder of the group."

Hamel touted the experience of
partner Michael Rivera, chairman of the securities enforcement and compliance
practice. Rivera is the former chief investigative counsel for the Office of
the Special Inspector General for the Troubled Asset Relief Program. In that
role, he was oversaw the TARP's financial relief programs. A
substantial part of that involved investigating claims of fraud.

But while Rivera, who joined
Venable in April, brings a wealth of government experience, he walked into the
private practice without a book of business.

"He'll be working on firm
matters and be able to generate his own business in short order," Hamel
said.

Rivera said he's confident
that his experience will open the door to business opportunities,
especially with work related to the Consumer Financial Protection Bureau.

"We have a lot of clients
that we do work for in the marketing and advertising space that are really in
the areas where the CFPB is going to focus in the future," Rivera said.
"The CFPB has not slowed down and it does not look like it's slowing down."

Hamel said that he is always on
the lookout for excellent attorneys to help expand the practice.

"I think we take the general view that a really good lawyer and an
effective legal mind is someone we would like to work with," Hamel said.